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Tuesday, May 30, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Teck Resources gets regulatory approval for copper project in Peru

The Zafranal project is an open-pit mining operation that is expected to last for 19 years

Teck Resources acquires regulatory approval for Peruvian copper project
Arequipa Region, Peru. Photo by WitR via Shutterstock

Vancouver’s Teck Resources Limited (TSX: TECK.A and TECK.B) (NYSE: TECK) has obtained regulatory approval from Peruvian authorities for a new copper mining operation in southern Peru’s Arequipa Region.

The company announced receiving the approval from the country’s National Service of Environmental Certification for Sustainable Investments (SENACE) on Friday, marking a significant step in advancing the Zafranal copper-gold project.

The open-pit mining operation is expected to have a 19-year life span, producing an average of 133,000 tonnes of copper concentrates annually during its first five years in operation.

The deposit is owned by Compañía Minera Zafranal S.A.C., a company that is 80 per cent owned by Teck and 20 per cent owned by Mitsubishi Materials Corporation (TYO: 5711).

A concentrator plant with a processing capacity of up to 80,000 tonnes per day will conduct copper ore processing at the site.

Read more: McEwen Copper reports ‘significant’ assay results at Los Azules

Read more: Rugby Resources finds significant copper mineralization in Colombia

The Zafranal team will update project cost estimates, develop detailed engineering plans and complete minor permitting activities throughout 2023. The company says a formal project sanction decision could be possible as early as the first half of 2024.

“Regulatory approval of the Zafranal Project is an important step forward in our strategy to grow our copper business and unlock significant value for shareholders,” said Teck’s CEO Jonathan Price.

“Zafranal will be a low-cost, long-life operation and is a key part of Teck’s industry-leading pipeline of high-quality, low-cost copper assets in well-established mining jurisdictions in the Americas,” he added.

Teck currently has a 22.5 per cent interest in a large copper-zinc mine in Peru’s Andes Mountains as well. The Antamina project is an open-pit mining operation that generated $1.4 billion in revenue last year.

The site is 33.75 per cent owned by Switzerland’s Glencore plc (LON: GLEN), 33.75 per cent owned by BHP plc (NYSE: BHP) and 10 per cent owned by Mitsubishi Materials.

Teck recently rejected a $22.5 billion takeover bid from Glencore over a perceived lack of shareholder interest.

The company is currently in the process of splitting its company into two separate businesses to focus on critical minerals and coal seperately: Teck Metals and Elk Valley Resources.

The company also partnered with Agnico Eagle Mines Limited (TSX: AEM) (NYSE: AEM) last month in a joint venture to advance the San Nicolás copper-zinc project in Mexico.

Teck shares rose by 2.53 per cent Monday to $60.46 on the Toronto Stock Exchange where they have risen by 35.8 per cent over the past six months.


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